Drawing a Line in the Concrete: The Other Side of a Philadelphia Labor Dispute

Over the last few months, news outlets within Philadelphia report that violence has been erupting at a jobsite just north of Center City. These articles continue to tell the story of two young brothers and developers, Matt and Mike Pestronk and their company Post Brothers. The reports generally focus on how the Pestronk brothers are bucking the long-standing tradition of one hundred percent union building projects in the City of Brotherly Love and the their claims that local tradesmen and women and other unions from the area have committed violence and property damage at one of their job sites. But what the news outlets have been neglecting to tell the general public is the other side of this story. The story of two brothers and people they have hired have stopped at nothing to provoke, intimidate and attack the union protesters all in the name of their own selfish greed.

The job site I’m referring to is the eleven story Goldtex building located at 12th and Wood St just north of Vine St in Philadelphia, PA. This was a former factory that sat uninhabited for many years and the Pestronk (Post) Brothers bought it from a bank in 2010 with plans to turn it into apartments. The surrounding community and the local construction trades were very happy that someone was willing to repurpose this old building, especially in such touchy economic times. The job was estimated to come in around 38 million dollars.

It wasn’t until after all the bids were in and accepted by the Post Brothers Company that anyone really raised an issue. It was a sixty/forty split, where sixty percent of the contractors would be non-union and forty percent hired would be union. The local tradesmen declared a project of that size (particularly within Philadelphia) is traditionally one hundred percent union and that they would protest the jobsite. The forty percent of union contractors on the site pulled off in solidarity. Those jobs were all rebid and non-union contractors were hired in their stead.

While the Pestronk brothers’ company (Post Bros) has the right to bid and hire non-union contractors, the local union tradespeople have the right to protest. This job would put their members, many that live in the city, to work. Instead, the large majority of the contractors are from outside of the City and State, with no stake in the community where the job site is located.

I’m sure by now some readers are asking: “Why should I care?” Labor Unions set a prevailing wage, which sets the standard and stabilizes the labor market. A contractor always knows what they’re dealing with price wise and this goes for a developer as well. This is a huge help in planning a project, since they wouldn’t be dealing with labor wage inconsistencies. The contractors that are working on this Post Bros job are paying their workers not only far less than what union workers make in Philadelphia, but also less than many of the trades’ non-union counterparts in the city and region as well. By fighting for their wages, the demonstrators are protecting everyone’s wages. Make no mistake, once union wages start dropping, others will as well and not just in construction. We’re all connected, whether some of us would like to admit it or not.

Union Construction Trades also have a stable pool of Labor to pull from who are skilled, safe-working craftsmen and women. OSHA has already fined contractors on the Goldtex site on more than one occasion because of hazardous work conditions. Furthermore, the Department of Licenses and Inspections shut down the site for roughly two weeks due to sub-contractors not having the proper business license.

Something that many don’t take into account is that Labor Unions are also protecting the tax base of the community. Since these contractors at the Goldtex site are paying their workers far less, these workers are paying much less in taxes, which in turn will cost the rest of us more. On top of State and Federal taxes, the City of Philadelphia has a wage tax for residents and non-residents that work within the city. Lower wages will mean less City tax, less State and Federal tax; which means somewhere down the line the rest of us will have to make up the difference. I don’t see the Pestronk Brothers jumping in to fill in that gap.

While regional newspapers have made the Pestronk brothers out to be the good guys or even the victims, I assure you that they are far from either. They are bullies that feel it’s ok to undercut working people so they can line their own pockets. They have their own team of hired thugs which are reminiscent of modern day Pinkertons.

One of the first articles that surfaced when the project began stated that the Pestronk brothers wanted to offer renters the best value, so they needed the contractor bids to come in as low as possible. They expressed that they care about their future tenants. However, the Pestronk brothers and their company Post Brothers have a dark history with tenants. Just ask the former residents of the Empirian Luxury Towers, now the Rittenhouse Hill Apartments at 633 West Rittenhouse Street in the Germantown section of Philadelphia.

Let’s go back to April 1st, 2011, where a meeting was held between the tenants of Empirian and the new owners of their apartment complex, the Post Brothers. The company representative told tenants that they would honor prior lease agreements and they told tenants “we appreciate your cooperation and we want you to be a part of the Exceptional Value and Exceptional Living Post Brothers Apartments offers to our residents.” However, contrary to this pledge, on July 19th, 2011, tenants in the A building of the complex started to find letters with new lease forms on their doors. These letters stated that renovations were going to start and residents had to be moved over to B building where there weren’t enough vacant apartments to accommodate all the tenants in the A building. They were instructed to do so by August 15th or the Post Brothers will assume those tenants will vacate their apartments by September 15th. The date to respond to these letters was July 31st.

That’s only twelve days people were given to completely rearrange their lives and since the B building was first come first serve, it complicated things for the tenants even more. Many of whom were long term tenants, for 20 to 30 years, numerous elderly or disabled on fixed incomes, many with young children. Instead of honoring the leases as promised, they jacked up the rent on the people who were able to find a place over in the B building, while the rest were left scrambling to find a home. These are not the actions of men that care about community.

The Pestronk Brothers have also claimed that they are the victims in all of this. Let’s take a closer look. The Pestronk brothers and their sub-contractors claim that unprovoked acts of violence, intimidation and property damage were committed by the local union tradesmen and women at the Goldtex building. First off, in no way have the local tradespeople or the Unions that are members thereof sanctioned or condoned any retaliatory behavior. Secondly, what the Post Brothers aren’t telling the reporters and the public is that their “security team”, hired sub-contractors, and employees have been instigating this from the very beginning.

I’ve been down to the jobsite and spoke with many of the protesters, and every time I’ve gone down, there have never been any issues. The Labor Squad — the police that handle labor issues in the city — are all over the area, along with a Sheriff’s deputy that the Post Bothers pay to have there, their “Security Team,” and tons of video and recording equipment. The area is more than safe and secure and the Pestronk Brothers, their security people, and sub-contractors know it. In fact local trades unions allege there are many instances where security footage had been doctored and posted on a website the Post Brother’s own to make the protestors seem as though they were causing trouble to turn public opinion against the local trades unions. When in reality they were reacting to provocation and physical assault coming from security personnel and employees working for some of the sub-contractors on site.

Earlier in this piece I wrote about how the security people were akin to modern-day Pinkertons. From what I’ve found out, this “security team” are actually armed guards, whose mission is to agitate, intimidate, and provoke the union demonstrators to act out violently.

Before this particular group of security personnel were brought on, the Post Brothers hired members of a known street gang who were brandishing firearms to intimidate the demonstrators. The police on the scene told them to leave rather quickly. Another time, a union protester’s arm was broken by two unknown assailants wielding an ax handle. A fight broke out and the attackers were hauled off in a Police car. The local trades unions allege that these assailants were hired by the Post Brothers or someone associated with the Company.

Some examples of the security staff’s actions include: shouting at the demonstrators, flashing weapons, threatening and assaulting protesters and bystanders, and arguing with Police. I would like to highlight a few examples. A demonstrator was walking alongside the jobsite and one of the security guards started to shout at him. A police officer repeatedly told the guard to stop yelling at the passerby, but the guard refused to relent and was eventually arrested taken away in a police car for the verbal abuse.

The second has to do with the personal bodyguard of the site Superintendent, Al McVicker. One day, Mr. McVicker was leaning on a work van that didn’t belong to any of the companies associated with the Goldtex site, when the operator of that particular vehicle, who was working in the adjacent building, asked McVicker to not lean on his company van. McVicker started to shout obscenities at the worker, who then proceeded to shout back. This is when McVicker’s bodyguard stepped in and laid his hands on the worker. The man pushed back on the guard in self-defense and the bodyguard proceeded to go after the worker. Police stepped in and gave the guard a written citation, because he took it upon himself to escalate the exchange to physical violence. This man attacked was not one of those protesting, he just wanted to do his work and was accosted for asking McVicker to not lean on his work van.

There is even an account of Superintendent Al McVicker himself attempting to provoke the demonstrators with physical acts. According witnesses, McVicker snuck up on one of the protesters near the site and kicked out his legs from behind. He thought he was outside the sight of security cameras Post Brothers have in place and the Police. When the man on the line retaliated, police immediately jumped in the middle to break things up. One of the officers on the site saw everything and confirmed that Al McVicker provoked the man and landed the first blow.

The Post Brothers have also alleged in the past that the local trades Unions had thrown bottles filled with urine and asbestos insulation into the building, although none of that was caught on camera. An alternative scenario is that the Post Brothers were illegally removing asbestos and lack sufficient bathroom facilities. If in fact they were removing asbestos without the proper safeguards in place, they not only put everyone on that site at risk, they place the neighbors that live there at risk as well.

It is very unfortunate that some demonstrators have had to resort to violence. Many of them are frustrated with how the economic downturn has affected the construction industry, both union and non-union, and have been out of work for some time. When someone gets in your face, throws an elbow or even spits on you, things can come to a boil rather quickly. There have even been instances where union protesters were hit by vehicles of sub-contractors. In one case, a couple of tradesmen were almost crushed by a large construction vehicle.

Recently, on the evening of August 14th, Mike Pestronk spoke to the Temple University Area Property Association (TAPA), who are rental property owners in the Temple University area of Philadelphia. A TAPA member who asked to not be identified gave me a detailed account of that meeting and what Mike Pestronk had to say. First off, he didn’t seem phased by what has been going on down at 12th and Wood St at all. When asked about the trouble at the site, he seemed to shrug and said, “There’s been minor property damage…nothing that bad.” He goes on to say, “Nothing that’s been costly.” My source said they really didn’t get the impression that any of it was much of a big deal to Mike Pestronk. Which is not what the Post Brothers have been telling the press.

At one point during the meeting, Mr. Pestronk was telling the group how to tell if a worker is good or not. He said with non-union workers it was easy, you could just tell by looking at them if they knew what they were doing or not. He went as far as to say that it’s easy determining someone’s work ability by what they drive. “If they have a cruddy pickup” for example. Mike also commented on union workers, “I would have to say that there are lots of good ones. The union people to avoid are the unemployed.” He went on to say, “They often have bad attitudes.” To assume someone in the construction industry is a bad worker or has a bad attitude because they’re unemployed is just another example of the Pestronk Brothers’ hubris and disparaging views of people who work with their hands for a living, union or non-union.

Mr. Pestronk also stated during the meeting that they hadn’t had much help with any of the city’s elected officials, but they found great help with some of the appointed officials, he specifically cited L&I (Department of Licenses & Inspections). This would explain something very curious that happened a couple of weeks ago. The Post Brothers were able to apply for and acquire a permit on a Friday at 4pm to shut down two blocks for a crane lift the next day at the Goldtex site. I’ve been told that this is unheard of in the construction industry in Philadelphia, in fact the owner of one of the largest crane companies in the region, who admits to having quite a bit of pull with the city stated that he couldn’t even pull something like that off. When a company that has been doing business in the city for decades has to jump through hoops to get the same sort of permit these newcomers on the building and construction scene received practically on the spot should make the average taxpayer wonder what precisely is going on at L&I.

Post Brothers say they care about community, yet treated past tenants at the Rittenhouse Hill Apartments who were poor, elderly and disabled like they were less than worthy to live in the building they had called home for decades. They say they want to give their renters the best value and that is why they must pay cut-rate prices on labor. But the facts just don’t support that claim. They bought the property from a bank where most likely they paid significantly less than the market value. Furthermore, the Post Brothers act as their own General Contractor, so they’re saving quite a bit more on top of the property price. Why do they need to cut costs on labor? Why do they feel working people’s skill and time are worth less? That doesn’t help the community. Plus the possibility that they hired someone who didn’t take the proper safeguards when abating asbestos, they also put the general public at risk.

The Post Brothers claim to be the victims in all this to the press, but Mike Pestronk seemed to shrug the whole thing off like it is no big deal. They have hired people who provoke, commit property damage, verbally abuse, spit on and physically assault the union demonstrators. And when the people on the line who have been kicked when they’re already down react to these actions, they and the organizations they belong to are demonized in the press and the court of public opinion without any care to fully research and tell both sides of the story.

So here it all is, the story of two brothers who are developing in the City of Philadelphia. They come across at first glance as the good guys and the victims, but you scratch the surface and you find their squeaky clean exterior is more than a bit tarnished.

Unions are the biggest crooks ever. Overpaid, “workers” who do the same BS jobs as workers making half the money, with half the headache. Nobody cares about the other story. If anyone in any other profession was out of work, would they picket, boycott, or protest? And don’t let me her anything about Occupy Philly people either.

Go to work and if you can’t get work bc of your inflated rates, then go do side jobs like the rest of you Union losers (doing exactly what UNIONS DON’T want you to do!!) And when you do that, you charge Union rates there too.

Unions may have worked in the past, but unfortunately not now. This country would be better without ANY Unions.

You can thank unions for your 40 hour work week and working safe working conditions. You can also thank unions for minimum wage and child-labor laws. Without unions, there would be no protection for workers from their employers. And make no mistake – there are lazy people in EVERY pocket of the world – union or non-union. Making such grand generalizations like that is absurd and idiotic, and certainly speaks to how little you understand nuance in any situation.

Great argument Joe! So lets see, no one, in your view should have the right to unionize? Should Firefighters not be unionized and be working at “the market rate”? Should Cops not be able to collectively bargain while they work in areas like West Philadelphia or North Philadelphia? Should those operating heavy machinery, or driving trucks over long hours and distances?

Should anyone have a right to bargain? Or should workers have a voice in the workplace? Please let me know! I guess you are a business owner in Philadelphia that have to deal with “those unions…”

Not a business owner and not suggesting that Unions can’t work. It’s the current practices of some that are outdated. If I owned a business, it would certainly not be in Philadelphia for many reasons not just the unions. I feel that people should choose how to build and operate their businesses the way they want to, within the laws of course. And people can choose to support the businesses that are operated by people who are like minded and have the same goals.

I was raised by a Union Carpenter father, and have two tithes that are union workers as well (laborer and electrical), so I understand the value of Unions.

You are absolutely correct about the Post Brothers, they are only out for themselves! They are not the altruistic developers they claim to be, Mike in particular is a nasty piece of work! The protesting union members have never created any problems in the neighborhood! I live very close to 12th and Wood, is there a way to verify how the asbestos was removed?

Being a union means working for fair wages where people are being taken advantage of. The wages that Trades advocate for are absurdly high and have no bearing on the actual value of the work done. They know theyre swindling people, and because they have no real response to criticisms against them, they try and use physical violence and threats. People always turn to bullying when they have no logic to rest on. It’s just fun to know that the tides are slowly turning and eventually one day, these people will have their power completely drained from them.

Paul didn’t get anything to write this article. Unfortunately we run on volunteer work because we are a small independent media outlet, but if you are willing to contribute to our page, we do have a separate tab for that.

This screed about “…how the Pestronk brothers are bucking the long-standing tradition of one hundred percent union building projects in the City of Brotherly Love…”, is short-sighted at best – more accurately, it’s exactly why nobody tries to build in Philadelphia.

With only 16% of workers are union nationally, and only 32% of workers in the trades in Philadelphia – why should we expect (demand) that a building project be build with 100% union labor?

You mention that “Labor Unions set a prevailing wage, which sets the standard and stabilizes the labor market.” While I agree that ‘prevailing wages’ are one factor in what labor rates should be – they are not the only factor. Another factor is what the local economy can support. Let’s face it – developers cannot afford to pay the same rates as you would find in Manhattan when people are paying rents that are only about half of what you would see in Manhattan.

You mention that “…the local union tradespeople have the right to protest…”. I agree wholeheartedly. But when unions go to a residential neighbourhood and make noise, that’s not protesting – that’s disturbing the peace. When unions thugs smash some guy between a fence and a wall – that’s assault. And when union protesters dump oil on a job site – that’s vandalism. As pro-union as this piece is, even the author recognised that “some demonstrators have had to resort to violence.”

This sort of nonsense has been going on in Philadelphia for decades. Anybody who has lived here (and paid attention) knows it. As a result, most developers refuse to develop here – leaving the city a crumbling mess. The only thing the Pestronk Brothers did was record it on video and posted it on YouTube for the general public to see. As a result – they shed some light on what really happens in Philly.

Ever wonder why the cost of living is so high here? Thank your local trade unions. I wish I could dictate my wages and monopolize the market. “Organized Labor” is organized crime. Drive by a “work” site and see how many are actually working. I was a member of one of these unions and it’s a joke. Union organizers do not care about fair work pratices, they in fact only care about one thing: collecting dues. What unions do not want you to know is that they are a business just like anything else and they thrive on revenue. They create an atmoshpere of fear and distrust and then capitalize on it. But hey, everyone has a drunken uncle, cousin, etc. who has no drive or work ethic, but needs a job. Enter the trade unions. I cannot tell you how many card carrying union members who I’ve seen get around or outright cheatthe mandatory drug testing. It’s a joke. The mass Exodus to the suburbs will continue as long as criminals like John Dougherty and his band of thugs continue to put a stranglehold on this city’s economy.

I want to thank the writer for this article, and also to those who offered positive comments here. I have been out of work for the past year and a half now, and I believe that it’s due to the outright hatred towards middle class union workers…not the wage rates.

Labor History in Two Minutes brought to you by the Rick Smith Show

Are you a
trade union worker? Have you ever worked
at a “prevailing wage” job site? Then today in Labor History, is an important day for you. The year was 1931. Congress
passed the Davis-Bacon Act. This act
requires that any new construction or repair of a public building or public
works project of more than $2,000 that includes federal funding must pay a
“prevailing wage.”&nbs […]

On this day in Labor History the year was 1937. The Steel
Workers Organizing Committee, and US Steel signed their first, historic labor
agreement. Previous
efforts to organize steel workers had failed due to the union-busting tactics of
the steel mill owners.&nbs […]